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Chei 3 Problem 7-17 (Algo) Comparing Traditional and Activity-Based Product Margins (L07-1, L07-3, L07-4, LO7-5) 100 point Smoky Mountain Corporation makes two types of hiking boots--the Xtreme and the Pathfinder. Data concerning these two product lines appear below Selling price per unit Direct materials per unit Direct labor per unit Direct labor-hours per unit Estimated annual production and sales Xtre $115.00 $65.40 $ 16.00 1.6 DLAH 32,000 units Pathfinder 5 85.00 $ 53.00 $10.00 1.0 DL 60,000 unite Print forces The company has a traditional costing system in which manufacturing overhead is applied to units based on direct labor hours. Data concerning manufacturing overhead and direct labor hours for the upcoming year appear below: Reinated total manufacturing overhead Estimated total direct labor-hours $1,279,200 111,200 Required: 1. Compute the product margins for the Xtreme and the Pathfinder products under the company's traditional costing system 2. The company is considering replacing its traditional costing system with an activity-based costing system that would assign its manufacturing overhead to the following four activity cost pools (the other cost pool includes organization-sustaining costs and die copacity costs) Activities and activity Measures Supporting direct labor (direct labor-hours) Batch setups (setups) Product sustaining (number of producto) Other Total manufacturing overhead coat Estimated Overhead Cost $ 556,000 770,000 400,000 53,200 $ 1,779,200 Expected Activity Xtreme Pathfinder Total 51,200 60,000 111,200 430 340 770 1 1 2 NA NA NA Compute the product margins for the Xtreme and the Pathfinder products under the activity-based costing system. 3. Prepare a quantitative comparison of the traditional and activity-based cost assignments. Complete this question by entering your answers in the tabs below. Required. Required 2 Required 3 Compute the product margins for the Xtreme and the Pathfinder products under the company's traditional costing system. (Round your intermediate calculations to 2 decimal places and final answers to the nearest whole dollar amount.) Xtreme + Pathfinder Total Product margin Required 2 > Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Compute the product margins for the Xtreme and the Pathfinder products under the activity-based costing system. (Round your intermediate calculations to 2 decimal places.) Xtreme Pathfinder Total Product margin Extra Credit - Homework - Algorithmic Total Xtreme % of Amount Total Amount Pathfinder % of Amount Total Amount Amount Traditional Cost System % % % % % % Total cost assigned to products Pathfinder Total Xtreme % of Amount Total Amount es % of Total Amount Amount Amount Activity-Based Costing System Direct costs % % % % Indirect costs RR % % Total cost assigned to products Cont not assigned to products Total cost